Three firms combine to create new decommissioning player in Aberdeen

AF Gruppen’s subsidiary AF Offshore Decom is joining forces with offshore decommissioning players Heerema Marine Contractors and Decom Energy to launch a new company: Fairfield Decom.

Headquartered in Aberdeen, this new venture combines the knowledge of an operator with the expertise and capabilities of the offshore decommissioning contractors, AF Gruppen said on Thursday.

Through this step, a unique late-life operations and decommissioning operator is created, providing an all-encompassing solution for offshore oil and gas assets, primary in the UK Continental Shelf, the company added.

The company noted that, with an average £1.5 billion annual projected expenditure over the next eight years, the UK Continental Shelf is the largest of the global offshore decommissioning markets.

In the Thursday statement, AF Gruppen further said: “Fairfield Decom represents a major leap towards a more innovative and sustainable offshore decommissioning industry. Customers will benefit from a new business model, designed to reduce complexity and the number of contractual arrangements, deliver operational efficiency, cost-effectiveness and predictability contributing to the 35% cost reduction targets set by the Oil and Gas Authority in the UK.”

According to the company, Fairfield Decom’s customers will benefit by having direct access to the expertise, capabilities and assets brought together via AF Offshore Decom, Heerema Marine Contractors and Decom Energy, as Fairfield Decom is able to manage, integrate and then execute end-to-end late-life and decommissioning activities.

‘Next generation decommissioning’

“This is what we call the next generation decommissioning,” the company said.

The creation of the joint venture is subject to approval of the Norwegian competition authorities.

AF Offshore Decom is a specialized contractor that has been developing and executing solutions for the removal and recycling of offshore installations for the past 15 years.

Heerema has over 50 years of experience in transporting, installing, and removing all types of offshore facilities, including fixed and floating structures in shallow, deep, and ultra-deep waters for the offshore oil, gas and wind industries.

Decom Energy is the first fully outsourced end-to-end late-life and decommissioning operator in the North Sea, with its subsidiary Fairfield Energy, well-advanced in the decommissioning of the Greater Dunlin Area.

Graeme Fergusson, Managing Director of Fairfield Decom comments: ”We have built a strong business relationship with AF Offshore Decom and Heerema as contracting partners in the Dunlin topsides removal and as alliance partners for integrated decommissioning business opportunities. The three companies have unrivaled experience in decommissioning and there is great alignment in terms of our responsible approach to business and our core values. Our operator background mean that we understand what the E&P community wants – an integrated solution that is technically robust, commercially creative and that delivers a safe, cost-effective and environmentally-sound solution.”

Highlighting the importance of the new company, Bengt Hildisch, Managing Director of AF Offshore Decom comments: “AF Offshore Decom is very pleased to collaborate with partners who are aligned with our goals. The establishment of Fairfield Decom represents an important step change in the decommissioning business model. It responds to the call from the UK regulator, the Oil and Gas Authority, to create new business delivery models to reduce complexity to support the ‘next generation decommissioning’.”

In support of the new venture, Koos-Jan van Brouwershaven, CEO of Heerema comments: “Heerema is proud to be part of this unique new venture. Three leaders in the global decommissioning market have joined forces, providing a smarter and cheaper approach to decommissioning and recycling offshore structures. As an experienced offshore contractor, Heerema is constantly seeking opportunities to further strengthen our position in the international offshore market through innovation, pro-activity and reliability. Fairfield Decom is a great example of how we are achieving those ambitions.”

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